This past week I gave a talk to students part of the Hong Kong UST DBA Program regarding implementing behavioral finance initiatives in companies. The talk covered some case studies that varied in different dimensions relative to the degree of integration of science and degree of organizational complexity. I have often emphasized that organizations that want to implement behavioral initiatives need to consider dimensions of Goals, Research, Innovation, and Testing (GRIT) among other behavioral-specific considerations (e.g., choice, information, process, and personalization architecture).
However, one of the most striking parts of the discussion for me surrounded the notion of ethics, which has come up a number of times in my discussion with students.
Although I was only able to touch on two angles in my HKUST talk, for the core classes I teach, I offer at least three different lenses for thinking about behavioral economics and ethics: 1) goal alignment between the company and the end user, 2) nature of behavioral intervention design (e.g., how much control does it exert), and 3) moral foundations and considerations (e.g., care/harm, fairness).
There are clearly other considerations that could come into play (e.g., to what extent comfortable sharing behavioral intervention thinking publicly; legal versus ethical 2×2). However, it is good that students think through ethical considerations. Things aren’t always as black and white as we’d might like, so it’s important to have multiple lenses through which one can evaluate situations.